Skip to main content

Over-the-Top Video Revenue to Reach $9.45B in Europe

The total over-the-top (OTT) video revenue in Europe was up 51 percent in 2013 reaching $3.2 billion and is expected to grow a further 43 percent this year, according to the latest market study by Strategy Analytics.

They predict that the majority of this new growth will occur within the online subscription VOD (SVOD) and ad-supported video business models, lifting the market above $9.45 billion by year-end 2018.

The growth of OTT video suggests that the audience is shifting towards accessibility and availability over actual ownership of home videos on DVD or Blu-ray discs.

"Over time, consumers will shift from content ownership to lower cost means of consuming media. As long as OTT services providers continue to offer attractive video catalogs at a reasonable price, accessibility and availability will trump ownership," said Leika Kawasaki, digital media analyst at Strategy Analytics.

The success or failure of OTT video services is heavily dependent upon the quality of their content library. According to the Strategy Analytics assessment, the expansion of global players like Netflix across Europe has been slowed due to complex content negotiation impacting the quantity and quality of available content in the region. Regardless, Netflix will continue its expansion in Europe.


Drivers of OTT Video Growth in Europe

Consumers across the region are consuming more OTT videos than ever before. Broadband internet access expansion, the proliferation of connected devices, and easy extensive online video catalogs have proven to be a potent combination in driving adoption of OTT video consumption.

Key findings from the market study include:

  • Led by Netflix, SVOD revenues experienced strong growth during 2013, up 133 percent and is expected to nearly double by year-end 2014.
  • Ad-supported video makes up over 60 percent of total OTT video revenue in Central & Eastern Europe, but will represent less than 50 percent of Western Europe OTT video revenue by year-end 2014.
  • Average OTT video spend per broadband user in Western Europe is about four times that of those in Central & Eastern European.
  • From a user perspective, the European online video market is reaching maturity but from a consumption, and even more importantly, monetization perspective OTT video is just beginning to hit its stride.

Popular posts from this blog

Wireless Solutions Advance Work from Home Trends

Despite a challenging backdrop from the ongoing effects of the global COVID-19 pandemic, the negative impact on fifth-generation (5G) wireless supply chains has been minimal compared to the wider mobile smartphone market. This led to 5G mobile devices becoming more diverse, brought to market quickly at a variety of price points, thereby accelerating affordability and adoption. The mobile market is transitioning to 5G and many leading vendors are now exploring the low-priced 5G smartphone segment. According to the latest worldwide market study by ABI Research, 681 million 5G handsets will be shipped in 2022. Therefore, the race is on for OEMs to find that all-important level of differentiation in their flagship portfolios to help boost margins and improve market share. 5G Wireless Market Development Vendors continue to drive the adoption of new product designs, screen technology, chipsets, and camera setups -- notably within the flagship smartphone segment. Meanwhile, the leaders seek a

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of